News ArticleESDS Software Solution Posts 48% Revenue Increase and Launches AI Sovereign Cloud Platform in Q2FY27
Q2FY27 PAT rises 40.7% amid strong operational performance; H1FY27 revenue grows 25% YoY
ESDS Software Solution Limited announced strong financial results for Q2FY27 with revenue rising 48% year-on-year to ₹1383.4 million and PAT growing 40.7%. The company launched its AI-autonomous sovereign cloud platform SWARAJ Cloud and expanded its product ecosystem. H1FY27 revenue grew 25% with continued focus on operational efficiency and financial discipline.
ESDS Software Solution Limited
General / Other
ESDS Software Solution Limited reported a 48% year-on-year increase in revenue to ₹1383.4 million in the second quarter of FY27, alongside a 40.7% rise in Profit After Tax to ₹310.9 million. The company also launched its AI-autonomous sovereign cloud platform, SWARAJ Cloud, and expanded its sovereign product ecosystem.
The company’s revenue growth was supported by strong performance across its service lines: Infrastructure as a Service (IaaS) contributed 50.5%, Managed Services 31.2%, and Software as a Service (SaaS) 18.3% of total revenues.
EBITDA for the quarter rose 18.3% year-on-year to ₹577.6 million, maintaining a margin of 41.8%. Profit After Tax margin was 22.5%. Earnings per share for Q2FY27 stood at ₹2.83.
ESDS launched SWARAJ Cloud, an AI-autonomous sovereign cloud platform featuring over 52 integrated services including AI and GPU computing, cybersecurity, and managed services. The platform enables accelerated AI innovation and mission-critical workload deployment while maintaining data sovereignty.
The company expanded its sovereign product portfolio with SWARAJ Nandi (Privileged Access Management), SWARAJ Hansa (AI-powered SIEM), and SWARAJ Sethu (Unified DevSecOps). It also appointed Mr. Sushil Kadu as Chief Product Officer to drive further product innovation.
For the half year ended September 30, 2026, ESDS reported revenue from operations of ₹2720.0 million, a 25% increase year-on-year. PAT rose 26.3% to ₹603.7 million, with an EPS of ₹5.49. The company maintained EBITDA margin at 41.8%.
Highlights
- Q2FY27 revenue rose 48% YoY to ₹1383.4 million; 4% increase quarter-on-quarter
- Profit After Tax at ₹310.9 million, up 40.7% YoY, with a 22.5% margin
- EBITDA margin steady at 41.8% with ₹577.6 million in EBITDA
- SWARAJ Cloud platform launched, integrating 52+ AI and cloud services
- New sovereign products launched: SWARAJ Nandi, Hansa, and Sethu
- Half year revenue grew 25% YoY to ₹2720.0 million with PAT up 26.3% to ₹603.7 million
Key Data Snapshot
What happened
- ESDS Software Solution reported a 48% year-on-year revenue increase to ₹1383.4 million in Q2FY27 with Profit After Tax up 40.7% to ₹310.9 million.
- EBITDA margin maintained at 41.8%, reflecting operational efficiency.
- Launched SWARAJ Cloud, an AI-autonomous sovereign cloud platform integrating over 52 services.
- Expanded sovereign product ecosystem with new cybersecurity and DevSecOps platforms.
- Appointed Sushil Kadu as Chief Product Officer to accelerate product innovation.
Financial performance
- Revenue from operations for H1FY27 grew 25% year-on-year to ₹2720.0 million.
- Q2FY27 Earnings Per Share slightly declined sequentially to ₹2.83 from ₹2.92 in Q1FY27.
- Maintained strong EBITDA margin of 41.8% for both the quarter and half year.
- Recorded IPO expense of ₹23.4 million impacting profit before tax in Q2FY27.
- Profit After Tax margin remained healthy at 22.5% for Q2FY27 and 22.2% for H1FY27.
Strategic context
- ESDS is focused on AI ecosystem growth, driven by global data centre investments projected to reach US$5.2 trillion by 2030.
- The expansion in AI infrastructure includes AI factories, large-scale GPU clusters, and sovereign cloud platforms.
- SWARAJ Cloud aims to address customer needs for data sovereignty, cybersecurity and advanced AI services.
- The company is positioning itself to leverage the growing strategic importance of digital infrastructure control across government, BFSI and enterprises in India and globally.
Regulatory and governance context
- Received long-term credit rating upgrades to CRISIL A-/Positive and IND A/Stable.
- IPO expenses related to marketing and advertising were expensed in Q2FY27.
- ESDS complies with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
Highlights
- Q2FY27 revenue rose 48% YoY to ₹1383.4 million; 4% increase quarter-on-quarter
- Profit After Tax at ₹310.9 million, up 40.7% YoY, with a 22.5% margin
- EBITDA margin steady at 41.8% with ₹577.6 million in EBITDA
- SWARAJ Cloud platform launched, integrating 52+ AI and cloud services
- New sovereign products launched: SWARAJ Nandi, Hansa, and Sethu
- Half year revenue grew 25% YoY to ₹2720.0 million with PAT up 26.3% to ₹603.7 million
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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